Mr. Oyarekhua highlighted the obstacles encountered in the implementation of the Domestic Crude Supply Obligation (DCSO), where the association has been actively engaging with regulators to ensure the full implementation of the DCSO as stipulated by the Petroleum Industry Act (PIA) in Sec 109. This law was specific for local refineries not to be starved of feedstock for refining.

However, the producers have posed challenges. They would prefer to export the crude than to sell it to local refineries, so we need the government to fully play its role to ensure that the laws that have been passed are fully implemented.

According to the producers, they say they have international obligations and want to use their intermediary companies to deal with the local refineries rather than dealing directly as stipulated in the PIA. This will lead to a price increase, as a result of the high premium on the crude oil which will be charged by the intermediary companies.

Mr. Momoh appealed to the Federal Government to play a crucial role in enforcing the PIA provisions to support local refineries.